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Finance and Management Services <br />www.santa-ana.org/finance <br />Item # 30 <br />City of Santa Ana <br />20 Civic Center Plaza, Santa Ana, CA 92701 <br /> Staff Report <br />December 20, 2022 <br />TOPIC: Home Occupation Permit Fee Resolution <br />AGENDA TITLE: <br />Adopt a Resolution Approving a Reduced Home Occupation Permit Fee for Home-Based <br />Businesses/Home Occupations Operating from Residential Premises within the City <br />RECOMMENDED ACTION <br />Adopt a resolution approving a reduced Home Occupation Permit Fee for businesses <br />operating from residential premises within the city, lowering the permit fee from $320.00 <br />per permit to $50.32 per permit. <br />DISCUSSION <br />Section 41-192.3 of the Santa Ana Municipal Code requires that every business operating <br />from residential premises within the City secure a Home Occupation Permit (“HOP”) and <br />comply with all applicable provisions of the City’s Municipal Code relating to home-based <br />businesses/home occupations. Since the original establishment of a HOP in 1982, home- <br />based businesses and the gig economy have grown significantly, especially in recent <br />years. Over the passage of time, the fee charged for a HOP has increased in tandem with <br />the Certificate of Occupancy fee. Historically, the City of Santa Ana (when compared to <br />neighboring municipalities in the County), has had considerably higher Certificate of <br />Occupancy and Home Occupation Permit fees. <br />For FY 2022-23 and in time for the adoption of the Miscellaneous Fee Schedule, the <br />Planning & Building Agency (“PBA”) with City Council approval, restructured the <br />Certificate of Occupancy (“COO”) fee for new businesses operating from commercial <br />premises within the City from a single charge per Certificate of Occupancy to a two-tier <br />system. The Tier 1 cost of a Certificate of Occupancy for businesses occupying less than <br />5,000 square feet of commercial area is $134.24 per certificate issued (including planning <br />and inspection), and the Tier 2 cost for all other commercial occupancies (including <br />planning and inspection) remained at $499.36 per certificate. <br />The approved restructuring of the COO fee prompted Staff to evaluate the current work <br />effort in the HOP process and look for opportunities to streamline and cost savings similar <br />to the recent review of COO process. The City’s new cost to issue a Home Occupation <br />Permit, based on a streamlined approach, is $50.32. These efforts to streamline the